No Mental Stress, No Wallace Damages

A court awarded a 62-year-old manager who was fired after 13+ years of service12 months’ notice (rather than the 9 the employer claimed he was due) plus 2 months’ extra notice in Wallace damages. In support of the latter ruling, the court cited the employer’s use of unsupported accusations of harassment made by employees after the manager was fired as evidence in its ultimately unsuccessful attempt to prove the firing was for just cause. The Court of Appeal upheld the 12 months’ notice but not the Wallace damages. There was no evidence that the employer had acted in bad faith or that the harassment allegations had caused the manager any mental stress. While it didn’t necessarily have to be medical, there had to be some evidence of actual harm, the Court explained [Grant v Electra Sign Ltd, 2018 MBCA 5 (CanLII), Jan. 25, 2018].